Branch registration in Turkmenistan

The parent company resolves to open the branch, approves its regulations and appoints its head. Its charter, trade register extract and bank reference are legalised and translated, and a legal address is confirmed in Turkmenistan. The file goes to the Tax Department of the Ministry of Finance and Economy, a state agency and an interdepartmental commission review the parent company, and after approval the branch is entered in the state register. It then registers with the statistics office, for tax and with the Pension Fund. Sovera prepares and files every document.

An application, the parent company’s decision to open the branch and appoint its head, the regulations of the branch, the parent company’s charter and trade register extract, a bank reference letter, a power of attorney and passport copy for the head, confirmation of the legal address and the receipt for the state fee. Turkmenistan is not a party to the Apostille Convention, so foreign documents are legalised at a Turkmen consulate or the Ministry of Foreign Affairs, unless a treaty with your country says otherwise, and translated into Turkmen or Russian.

Branch registration in Turkmenistan costs USD 7,500 with Sovera. A representative office costs from USD 5,500. The state charges TMT 8,000 for registration and TMT 1,800 for the certificate that allows foreign trade, about USD 2,800 together at the official rate. We charge state fees, legalisation, translation and courier at cost, on top of our fee. You get our fee as one fixed price in writing before work starts.

6 to 9 months from complete documents. The registration decision itself takes three working days, but the parent company is reviewed first: up to 30 days at a state agency and 14 days at the interdepartmental commission. Those are the official periods, and registration takes longer in practice. Allow extra time to legalise documents and to open the bank account.

Yes. A branch has no shareholders of its own. It is part of the foreign parent company, so no local shareholder or partner is involved. That is the main reason foreign companies choose a branch over a company in Turkmenistan.

Neither. A branch needs no charter capital, because the parent company provides its property. The head of the branch is appointed by the parent company and may be a foreign national. A foreign head who is employed in Turkmenistan needs a visa and a work permit.

Neither is a separate legal entity, and both are registered in the same way, for three years at a time. A branch may trade, sign contracts and earn income, and pays 20% profit tax. A representative office represents the parent company and protects its interests, but may not do business of its own.

A branch is part of your existing company. It is 100% yours, needs no charter capital and pays 20% profit tax, and the parent company answers for its debts. In our experience it also pays 15% on profit it sends to its parent company (Tax Code, article 180). An LLC is a separate Turkmen company, and in registration practice it needs a Turkmen shareholder with at least 1%. It pays 8% profit tax, then 15% on dividends paid abroad. A contractor on a project usually chooses a branch. A lasting local business with a partner suits a company.

A branch pays 20% profit tax on what it earns in Turkmenistan and 15% VAT, and as an employer it withholds 10% income tax and pays 20% pension insurance on local salaries. In our experience it also pays 15% on profit it sends to its parent company (Tax Code, article 180). The charges on profit and the filing dates are in the Turkmenistan tax guide.

Yes. A branch or representative office of a foreign company is registered for three years at a time. The registration is then extended on application. The state fee for an extension is TMT 6,000.